Capitalism Socialism

Ideas
Laissez-faire means to "let it be"; opposed to
government intervention in economics because
capitalists believe it introduces inefficiencies. A
free market produces the best economic outcome
for society. Govt. should not pick winners and
losers.
All individuals should have access to basic
articles of consumption and public goods to
allow for self-actualization. Large-scale
industries are collective efforts and thus the
returns from these industries must benefit
society as a whole.
Economic
System
Market-based economy combined with private or
corporate ownership of the means of production.
Goods and services are produced to make a profit,
and this profit is reinvested into the economy to
fuel economic growth.
The means of production are owned by
public enterprises or cooperatives, and
individuals are compensated based on the
principle of individual contribution.
Production may variously be coordinated
through either economic planning or
markets.
Key Proponents
Adam Smith, David Ricardo, Milton Friedman,
Fredrich Hayek, Ayn Rand, Murray Rothbard
Robert Owen, Pierre Leroux, Karl Marx,
Fredrick Engels, John Stuart Mill, Albert
Einstein, George Bernard Shaw, Thorstein
Veblen, Emma Goldman.
Economic
coordination
Relies principally on markets to determine
investment, production and distribution decisions.
Markets may be free-markets, regulated-markets,
or may be combined with a degree of state-
directed economic planning or planning within
private companies.
Planned-Socialism relies principally on
planning to determine investment and
production decisions. Planning may be
centralized or decentralized. Market-
socialism relies on markets for allocating
capital to different socially-owned
enterprises.
Philosophy
Capital (or the "means of production") is owned,
operated, and traded for the purpose of generating
profits for private owners or shareholders.
Emphasis on individual profit rather than on
workers or society as a whole.
From each according to his ability, to each
according to his contribution. Emphasis on
profit being distributed among the society or
workforce to complement individual
wages/salaries.
Religion Permitted/Freedom of Religion
Freedom of religion, but usually promotes
secularism.
Political
movements
Classical liberalism, Social liberalism,
Libertarianism, Neo-liberalism, Modern Social-
Democracy, Anarcho-Capitalism
Democratic Socialism, Communism,
Libertarian Socialism, Anarchism,
Syndicalism.
Political
System
Can coexist with a variety of political systems,
including dictatorship, democratic republic,
anarchism, and direct democracy.
Can coexist with different political systems.
Most socialists advocate participatory
democracy, some (Social Democrats)
advocate parliamentary democracy, and
Marxist-Leninists advocate "Democratic
centralism".
Key elements
The accumulation of capital drives economic
activity - the need to continuously produce profits
and reinvest this profit into the economy.
"Production for profit": useful goods and services
are a byproduct of pursuing profit.
Economic activity and production especially
are adjusted to meet human needs and
economic demands. "Production for use":
useful goods and services are produced
specifically for their usefulness.
Way of Change
Fast change within the system. In theory, the
relationship between buyer and seller (the market)
is what fuels what is produced. Government can
change rules of conduct/business practices
Workers in a Socialist-state are the agent of
change rather than any market or desire on
the part of consumers. Change by the
workers can be swift or slow, depending on
Capitalism Socialism
through regulation or ease of regulations. change in ideology or even whim.
Private
Property
Private property in capital goods is the dominant
form of property. Public property and state
property play a secondary role, and there might
also be a limited number of collective property in
the economy.
Two kinds of property, personal property,
such as houses, clothing, etc. owned by the
individual. Public property includes
factories, and means of production owned by
the state but with worker control.
Social Structure
Classes exist based on their relationship to the
means of production: the ruling class, or
"capitalists", own shares of the means of
production and derive their income in that way. In
contrast, the working class is dependent on wages
or salaries.
Class distinctions are diminished.
Ownership
structure
The means of production are privately-owned and
operated for a private profit. This drives
incentives for producers to engage in economic
activity.
The means of production are socially-owned
with the surplus value produced accruing to
either all of society (in Public-ownership
models) or to all the employee-members of
the enterprise (in Cooperative-ownership
models).
Free Choice
All individuals make decisions for themselves.
People will make the best decisions because they
must live with the consequences of their actions.
All choices, including education, religion,
employment and marriage, are up to the
individual. All health care and education is
provided free to everybody.
Examples
The modern world economy operates largely
according to the principles of capitalism. The UK,
US, and Hong Kong are mostly capitalist.
Singapore is an example of state capitalism.
Union of Soviet Socialist Republics (USSR):
Although the actual categorization of the
USSR's economic system is in dispute, it is
often considered to be a form of centrally-
planned socialism.
Definition
A theory or system of social organization based
on the free market and privatization in which
ownership is ascribed to the individual persons.
A theory or system of social organization
based on the holding of most property in
common, with actual ownership ascribed to
the workers.
Discrimination
Government does not discriminate based on race,
color, or other arbitrary classification.
The people are considered equal, laws are
made when necessary to protect people from
discrimination.